The Clear Gold Manipulation on Display For All to See

Phoenix Capital Research's picture

 

At this point the Gold manipulation is outright absurd.

 

For years there have been rumors that Gold and Silver were being manipulated lower. For the most part these rumors were thought to be in the realm of “conspiracy theory” by most of the investing crowd.

 

However, at this point the evidence is clear. Someone is clearly manipulating Gold lower. This is happening almost every morning when someone dumps Gold in massive sell orders, pushing the precious metal’s price sharply lower.

 

The reason we know that this is a clear intervention, and not simply a large institution selling concerns the pattern of selling.

 

On Friday morning last week, someone staged an order to dump 5,000 futures contracts of Gold. That amounts to over $640 million in Gold. In one order. Placed all at once.

 

When it happened, Gold dropped $25 per ounce in a matter of two minutes. It doesn’t matter that the sell order was cancelled half way through, the damage was done and Gold continued to languish as it has (extraordinary given the systemic risks in the US and Europe today).

 

No one and I mean NO ONE would place an order like this. It simply doesn’t happen. Anyone who is trying to unload a position of this size would do it in chunks over a period of time in order to not push the price sharply lower.

 

Put it this way, if you happened to own this much Gold and were looking to unload your position, you would not want the price of Gold to be lower because that would mean you make less per ounce sold.

 

So you would be very careful to unload this position with as little impact on the market as possible, so that you could get the best prices. You wouldn’t just hit “sell” and dump the whole batch in one go.

 

Again, no one would do this. That sell order came from intervention. Someone was trying to send a message to the market. Gold futures were halted for 10 seconds as liquidity dried up.

 

I keep hearing how this sell order could have been a “mistake.” If that were the case, it wouldn’t keep happening because the person who made the mistake would be fired.

 

The “mistake” has happened repeatedly over the last few weeks. So either some institution has a whole roster of numbskulls trading Gold, or the individual numbskulls at different institutions are all making the same mistake in roughly the same time period.

 

The odds of this are next to none.

 

Which begs the question, just who is trying to push Gold lower right now? Just about any sensible investor would be buying the precious metal to hedge against the default risk/ debt ceiling risk in the US.

 

For more market insights as well as several FREE investment reports, swing by:

http://gainspainscapital.com

 

Best Regards

Phoenix Capital Research

 

 

 

 

 

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Smiddywesson's picture

I must admit, I got a hearty laugh from this article.  By this time, even the most ideological, gullible rubes should understand that these are not "normal" markets.  In fact, I'd say we haven't had normal markets for some time now.  It's a market, an "auction in search of value", only until someone shows up with enough order flow and/or audience to make it something else.  Until that someone gives up, and the "market" snaps back into an auction in search of value, it's going to do what it's told.  

In the case of gold, that someone who doesn't want it to rise consists of the NWO, central bankers, the Administration, and the financial media.  They have the largest audience possible and all the order flow they need.  Frankly, I'm surprised they haven't allow gold to rise above the $1800 again so they can hammer your asses again.

Psst, you can become as knowledgeable as anyone in the world at Three Card Monte and still not win, because the game is rigged.  IT'S NOT A MARKET, so gold will not be fairly valued as long as the system continues.  If you stack, then stack, but stop whining about make believe markets where everything is fairly valued.

topshelfstuff's picture

If you know you were going to Default on Dec Gold contracts, you might as well make it as Big as possible.

Example: lets say you were going to have a Bankruptcy go in effect in one month, yet you managed to still have a Credit Card...You could go out and Max out the Card, since the Balance isn't going to be paid...aside from this point, any Big Loss always gets put on the Taxpayer's Tab

 

As far as China's huge purchasers of Gold, if the US & China cut a deal to accept US Bonds as Payment, but at 50 cents on the Dollar, they wouldn't make that info Public...Plus it makes it easier to make US Gold available via claims of ETF Selling. So its possible that China is giving up $2,000 worth of Face Value T-Bonds for every $1,000 spent buying gold, IMHO. they just wouldn't want to show a POG of $2,500 because ironically more Buyers come in at Higher prices

World of Debt's picture

It's a WORLD OF DEBT!!! So, be patient and buy when the maniacs take gold to ridiculously low levels...

See Hilarious Music Video "WORLD OF DEBT":

https://www.youtube.com/watch?v=99xsqxzJnXs

Smiddywesson's picture

Yes, they will take the "market value" of gold as low as possible just before the end, and no doubt use some clever financing to scoop up all those eagles the panicked gold bugs dump at the bottom. 

My advice to anyone stacking is not to watch the news.  It's as simple as that.  You stack what you can for a rainy day and wait for the collapse.  What good can watching the gold market do you verses the potential bad?

silverserfer's picture

could this have to do with miners locking in prices for future mine production? Some miners may be in a tight spot and need capital now and its based on current spot price. If spot is lowered and money is loaned the lender could be getting a great dead on a miners future PHYSICAL gold production.

Quixote2's picture

Cui bono.......

Who benefits in supressing the price of gold?...... Answer, the parties buying physical gold.

If China has their agents (JPM etc) trade large quantities of paper gold in the paper market to drive down the "price" of gold, China then benefits in buying the physical gold. The smaller losses in covering their paper shorts are a smaller premium than if they only bought physical gold. Maybe the paper churning is 10-50 times the physical withdrawal. Lots of smoke to cover the acquisition of the worlds gold at a lower average price.

Bananamerican's picture

cui bono? The Fiat Cartel.

from GATA

"The Wall Street Journal reports tomorrow that former Federal Reserve Board Chairman Paul Volcker has become a close adviser to the Democratic presidential candidate, Sen. Barack Obama. So it may be good for gold's friends to see the following quotation from Volcker's memoirs, which, as far as we can tell, have been published only in excerpts and only in The Nikkei Weekly in Japan, this particular excerpt having been published on November 15, 2004. Volcker wrote of the events of February 12, 1973:

"That day the U.S. announced that the dollar would be devalued by 10 percent. By switching the yen to a floating exchange rate, the Japanese currency appreciated, and a sufficient realignment in exchange rates was realized. Joint (central bank) intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake."

Of course maybe Volcker's wonderful idea will not have as much utility now, since there already long has been "joint intervention in gold sales" by Western central banks, to the point where the gold seems to be running out. But at least Volcker's reminiscence is one more piece of evidence that rigging currency markets and the gold market in particular is seldom far from the thoughts of central bankers, even as some of their admirers in the financial press keep denying that they'd ever do such a thing"

 

as far as I'm concerned, Volcker's reminiscence is THE piece of evidence when discussing PM's eccentric price volatility.

Coming from the conservative VOLKER back when the national debt was a quaint $470 Billion, it reveals so much about official attitudes toward PM market manipulation ("all's fair in love and war").

Consider where we are NOW...

Doves in the driver's seat, no cops, JPM's (et al) FED derived marching orders, fig leaf investigations in which "no evidence of market manipulation" can be discerned...

These directives come from on high

Haole's picture

Yes and the manipulation is LEGAL unfortunately for metals investors so get over it, have patience and be secure in your "insurance" if you have it.  If you went all-in on gold and silver expecting it to be a financial end-times panacea and/or to make you rich short term then tough luck.  All this snivelling about manipulation is to the point of a cage full of old world monkeys throwing their scat around because the zookeeper is late with the bananas.

bardot63's picture

It would be nice to get over unless you are old enough to have believed in honest markets and free markets and honest government for at least part of your life.  No matter how old you are, you have a right to honesty and freely traded markets, so When you say 'get over it,' you show your misunderstanding of so many things, included the forces of good and evil, the march of history and morality.  Legal manipulation doesn't mean correct or honest or moral manipulation.  It just means that your government has its boot on your throat and that should really be pissing you off. 

 

Haole's picture

I don't need is to be patronized as I am old enough to not only remember somewhat "free" markets and more "honest" government but to have put much energy into spiritual development, the understanding of good and evil on many levels as well as try to learn history and live a moral existance. 

Also, with age, one realizes that it is utterly useless and counterproductive to be snivelling about such things one has no control over, let alone on some internet blog?   Perhaps people need this echo chamber for comfort or as an outlet, I don't get it personally and there are a lot of molested souls out there apparently.

I in no way meant to have "legal" interpreted as "correct", "honest" or "moral" in the context of my comment. 

How do you know current events aren't frustrating me? 

Has life ever been fair for most during the "march of history" you reference and seem to take pride in knowing? 

You sound like someone who's been, and is being, victimized.  Happy to say I'm far from that state of being in my "misunderstanding of many things" as you so hypocritically put it...

 

lasvegaspersona's picture

I think it works like this (for fun and profit)...One sells a bunch, knocks out stops, lets the price go down (it went even lower than the drop you created due to the stops) and when things settle you buy back and pocket the profit....is that not doable?

All that is required is the ability to sell enough to move the market....on margin I imagine there are a number of players who could do this.

I understand it can be quite profitable.

Oh yes....this can be repeated from time to time...no evil desire to squish the gold price...just pure good old American (or international) greed.

The only consequence is a lower market price of gold which tends to excite the Indians and Chinese and a few here at ZH (and they then buy physical...but that smallish bit does not move markets). Until the physical is all gone however one could play this game for a long time.

btw GLD inventories are down to 890 tons....from 1350 in January....we should be just fine...for a while...

silverserfer's picture

manipulation= desperation. whe everything in the market is being inflated in value and the one thing that is being deflated in value due to the inflation of fake pms(ETF, futures, etc) this is an oppotunity. 

msnrochny's picture

We need the equivalent of an Edward Snowden from within the Fed and banks.  Someone who witnesses the interns placing the orders to sell gold and silver in massive amounts each morning, and brings it out.  Putin probably has an extra condo somewhere in Moscow, next door to Mr. Snowden that they could use for awhile.

Or we could all chip in to a fund offering a bunch of money to anyone on the inside, that outs the scum buckets doing this each and every day.

quasimodo's picture

We could have a thousand Edwards and nobody would think anything of it. The general populace STILL does not give a flying fuck, as long as they have their bread and circus sideshow all is well. It won't change until the masses have a defining moment during the circus that they are witnessing the closing act; kind of like when the EBT cards went down last week.

That right there gave us just a taste of what to expect. No freebies for more than three days and the hounds of hell will be let loose. Glad I don't live in Compton or similiar. I can't imagine the scenes from those locales when folks are cut off from junk food and crap. It's going to make the LA riots look like an afternoon picnic.

RafterManFMJ's picture

Bread part might be in trouble; rumor has it Oslamy is going to cancel all foodstamps in November is the debt limit is not raised.

Reaper's picture

What if the seller and buyers are just tentacles of the same squid.  That reduces the loss to transaction cost, which is recouped by buying more at the lower price.  Where's Eric Holder and the JustUS underwater searchlight?

Widowmaker's picture

This is called racketeering, or simply creating the itch to scratch and get paid twice.  Short and unloading at the same time.

"THIS COULD NEVER HAPPEN..." is total bullshit, it did and does all the time so routinely the author just doesnt care to notice.

Interestingly with gold, it is upward price pressure that is the racket.  See ya at $780/oz.

Justice?!  Who the fuck is expecting justice??  There aint' no justice with Incorporated Fascism sponsored by government, fools.

Joebloinvestor's picture

When they find the "manipulators" expect a BIG FUCKING NOTHING to happen.

 

Anything that can be manipulated will be.

bardot63's picture

Hey, Phoenix Capital....if you aren't too lazy, go to GATA.org and you'll know exactly who is pushing gold lower.  The US Fed, thru JP Morgan and a half dozen other banks, believe they are protecting the dollar by pushing gold lower.  Just for your info, Phoenix, gold is the enemy of the printed fiat dollar or hadn't you heard?   Hey, Phoenix Capital, they aren't selling physical gold, you morons!!  They are selling paper gold, you morons!!  They are selling naked shorts, you effing idiots, which is illegal if you or I do that.  GATA has a stack of evidence, documents, court records and testimony piled roughly 32 feet high going back 13 years, and all that you simpletons at Phoenix Capital need to do is study that evidence.  While you are scratching your heads over there at Phoenix Capital, large numbers of other hedgies, advisors and media are catching on, so you are very late to the game.  I normally no longer pay attention to Phoenix Capital's posts, but accidently read this piece of meandering malarky and I'm very sorry I wasted my time.  Can't understand why ZH still runs Ph. Cap's bullshit

hangemhigh77's picture

Maybe Phoenix should report what they've discovered to Bart Chilton, he said he will protect the markets.  Oh wait Bart isn't there right now.  How does the world spin without Bart and his hair?

RockyRacoon's picture

They're just pulling in other head-scratchers (people too lazy to do their DD).  It's an old ploy that will keep working as long as there are lazy people out there.... forever I'd assume.

jubber's picture

rumour out there it's actually the Chinese selling to pick up a lot more cheaper??? could make sense

dumpster's picture

jubber

so you have inside scoop on the rumour . or just repeating some one elses rumour ..  that  he got from a rumor  and was also a rumour

Citxmech's picture

Follow that whale and pick up the scraps.

BTFD and take delivery.  These sale prices won't/can't last forever.

Atlas Crapped's picture

The only thing more absurd than the manipulation is the effort made toward proving it. After all, if some fool went about screaming that the world is NOT FLAT day after day, they'd sooner or later have the jackass committed.

And yet Goldbugs GO On and On and On and On and On and On and On and On and On and On and On and On and On and On and On and On and On and On and On and On and on and On and On and On and On and On about it, as though there's still some shred of evidence left that the markets are NOT manipulated upon which to somehow cling to in 1955 good citizen fashion.

The price of EVERYTHING is manipulated, ESPECIALLY GOLD. EVERYONE knows it. NOTHING will be done about it. Anyone actually TRYING TO DO ANYTHING ABOUT IT will be ignored or erased. This will not change until the entire system collapses, although one begets the other so it really doesn't matter which "comes first".

Get over it, and carry on ....

Polonius's picture

Everyone knows it?

Doug Casey and Bill Fleckenstein say they don't know it.

Anyone who whines about gold investors clamoring for free and fair markets is probably a troll and certainly a douchebag.  Go play with your video games, Douche.

fourchan's picture

so they have no idea who placed the order?  a terrorist could go to that exchange and reek havoc and nobody would know who it did it? .bullshit.

RafterManFMJ's picture

Personally, I watch airline stocks when vacationing; any massive shorting of same and I'll cancel my plans and drive.

Not that I don't believe the official story about - everything, 'cause I do! I do believe in spooks, I do I do.

LawyerScum's picture

Don't worry, as soon as the one borderline mentally retarded part time CFTC worker in charge of such investigations gets done watching the latest Japanese tentacle porn he just bit-torrented, he'll get right on that.

Sufiy's picture


Hopefully, this discussion about apparent Gold market manipulation will be going mainstream now.

Peter Schiff: Janet Yellen as Fed Chairman is Very Bullish for Gold 
Peter Schiff presents to us real Janet Yellen's background vs the ongoing media PR campaign, her intentions and "the new FED policy". 

Yellen’s infamous 2010 quote regarding the 2007-08 housing/credit collapse: 

For my own part, I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow banking system, the S.I.V.’s — I didn’t see any of that coming until it happened. 

  The crisis is not about "NOT raising the debt ceiling" - it is about the raising debt ceiling, it is about more debt. It is very bullish for Gold and Janet Yellen will be even more accommodative in her policies.
  China knows where this is all going and preparing itself for the moment when US Dollar is no more the world reserve currency. China is buying Gold by the tons now and taking physical delivery. Peter Schiff is buying more Gold mining stocks now: "I buy the dips and accumulate." http://sufiy.blogspot.co.uk/2013/10/peter-schiff-janet-yellen-as-fed.html#


Andrew Maguire: Gold Smashdown, FED Defends The Dollar And How Goldman Sachs Operates. GLD, MUX, TNR.v, GDX

 

Andrew Maguire presents to us the chronicles of ongoing war behind the curtain with FED defending the US Dollar at the crucial level 0.80 and how the FED's #1 Gold Prime Dealer Goldman Sachs operates in the Gold market. Now we have more information on why Goldman Sachs has issued the Sell Call on Gold last Wednesday. 

 
  All these revelations will never lead to the higher Gold prices without Buyers and one can argue that this manipulation can go forever. According to the Andrew Maguire the key crucial difference now is that Central Banks are buying and, particularly, China is taking all available Gold for physical delivery now.

 

shovelhead's picture

They must be buying those fat fingers by the gross.

flyingpigg's picture

I love these "mistakes" bitchez!

Why complaining about it, just take the offer.

flyingpigg's picture

I love these "mistakes" bitchez!

Why complaining about it, just take the offer.

Deo vindice's picture

"Because sentence against an evil work is not executed speedily, therefore the heart of the sons of men is fully set in them to do evil." (Ecclessiastes 8:11)

If perpetrators were dealt with justly and quickly the first time, the evil they do would not happen again.

There is such a thing as a deterrent to wrong doing, and where that deterrent is missing, the evil will continue.

Downtoolong's picture

It doesn’t matter that the sell order was cancelled half way through

It does matter. The threat of the sell order returning is an even more powerful deterrent to buyers than the selling itself. Market manipulation is as much about psychology as actual trades, and these bastards have become masters at it while going completely unchecked, unchallenged, and unpunished by so-called authorities and regulators for their crimes.

 

auric1234's picture

The fundamentals are the true masters. Sooner or later, they reassert themselves.

Gold is falling more and more into strong hands who no longer care about its dollar value. They want the metal by itself. They know it's money. For every seller who thinks gold lost value, there is a buyer who doesn't give shit about dollars. THAT is the fundamental driver. And they can't stop it with their technical childish toys.

 

Manthong's picture

Every western regime central bank has a vested interest in maintaining a high dollar, low precious metals/commodities ratio.

They are all in this together and attacking under the fiat banner.

Doña K's picture

It seems to me that this may be a transfer of payment scheme. I sell hard on one account during low volume (in a high tax jurisdiction) I take out all the stops and then I hard reverse and buy in increments on another account (in a low tax jurisdiction) while I am making a ton of money on the round trip.

It could even be the same bank. I hope I am not giving the banksters another tip.